Security and the law: Plugging up the Sprinkler Heads
An Illinois Appellate Court recently upheld a lower court ruling which essentially held that an insurance company could deny coverage to its insured when the insured neglected to advise the carrier that it had capped certain sprinkler heads in the automatic sprinkler system.
The plaintiff brought the action against the defendant, the insurance company, to recover the loss of its commercial property after a natural gas explosion and an ensuing fire damaged the property. The insurance contract provided that the plaintiff was required to maintain its automatic sprinkler system.